Monthly Publication

During June 2015, the Pepper Price Index increased by 7.64 points for black pepper and 8.64 points for white pepper (Table 1). The composite price of black pepper increased by 2.5% from US$ 8,892 in May 2015 to US$ 9,113 per Mt in June 2015, while that of white pepper increased bt 2.9% from US$ 12,672 per Mt in May to US$ 13,041 in June 2015 (Table2).

Table 1.
IPC Price Index (Base Year: Average 2006 - 2010)

Note: The price index is calculated based on price developments during 2006-2010

Table 2:
Composite Price of Black and White Pepper in USD/Mt

Pepper market showed a strong trend in June 2015 and prices increased after experiencing a marginal decrease in May 2015. The high prevailing price reflected no selling pressure occurred. Demand is also increasing and in other side supply of pepper in producing countries remained limited.

In India, Malabar black pepper increased by INR 30 per Kg from 600 per Kg at the beginning of June to INR 630 pr Kg at the monthÔÇÖs close. When compared to average price in the previous month, the local price of black pepper in India increased by 5%.

In Vietnam the market was more dynamic as supported by available supply of new material from recent harvest; although producers were not in a hurry to sell new pepper at reduced price. Local price in Ho Chi Minh City increased from VND 185,000 and VND 265,000 per Kg respectively, for black and white pepper at the beginning of the month to the level of VND 202,000 per kg for black and VND 270,000 for white. In dollar terms, average price of pepper at domestic market increased significantly by 8% for black and 2% for white pepper. Fob price of black and white pepper increased by 2%. Due to lower harvest in Vietnam this year, there was no selling pressure reported. The high overseas demand and limited supply from other producing countries has pushed the price to the higher level. The prices received in June were the recorded highest for Vietnam so far.

In Lampung, local price of black stood at the level of IDR 112,000 throughout the last three weeks of June. This was also the highest price of Lampung black achieved so far. In dollar terms, average price of Lampung black increased marginally by 2%. The market remained quiet and trading was very limited as very tight material at producers as well as at local traders. New material is expected to arrive in the market only by August. It is estimated the output from this year harvest would be better than the last year, but lower than output achieved in 2012. Significant increase is anticipated in East Lampung.

In Bangka, price of the white pepper followed black. In June the price increased to IDR 182,000 per kg from IDR 177,000 in May. The price recorded in June was also the highest received so far. White pepper exported from Indonesia was mainly from Bangka. Out of 16,000 Mt of white pepper exported from Indonesia, around 8,000 Mt was reported from Bangka. Supported by anticipated better harvest this year around 10,000 Mt is expected to be shipped from Bangka. Other sources of white pepper in Indonesia are Kalimantan and Sulawesi.

In Sarawak, Malaysia, pepper prices were also increased during June from MYR 25 per kg for black and MYR 40 per Kg for white at the beginning of June to MYR 28 and MYR 43 per Kg respectively for black and white pepper at the monthÔÇÖs close. In dollar terms however, average price in June was relatively stable when compared to average price in May 2015.

In Sri Lanka, local price of black pepper also increased from LKR 1,065 per Kg to LKR 1,127 at the monthÔÇÖs close. When compared with the average price in May, 4% increase was recorded. The price received in June was recorded the highest for Sri Lankan pepper. Supported by good weather this year, production of pepper in Sri Lanka is estimated to be better, but still lower than what was achieved in 2013.

In Brazil pepper the market has slowed down as available stock from last year harvest has tin. In May 2015 export of pepper from Brazil was only 1,435 Mt, a significant decrease when compared to export volume of 2,756 Mt in April 2015 and 4,950 Mt in December 2014. Some source reported that production of pepper in Brazil is anticipated lower this year.

Looking at the above situation, inventory requirements and also the amount of pepper production is not rising at the same rate of demand; hence there is no fundamental reason for price fall and the price is expected to remain high this year until significant change in production takes place in 2016.

Black pepper prices prevailed in local markets are shown in Table 3 and FOB prices in Table 4 and for white pepper are shown in in table 5 and 6 below.

Table 3:
Local Price of Black Pepper in US$ per Mt

Table 4:
FOB Prices of Black Pepper in US$ per Mt

Table 5:
Local Prices of White Pepper in US$ per Mt

Table 6:
FOB Price of White Pepper in USD per Mt